TSX:PEY appeared on my screener for a MACD crossover play. I applied Gann box and it looks like we are coming up on a critical point with the potential for the move upwards.
I have shown the 48 Day periods which is part of Gann's 192-day cycle to see if there are any points of reversals and it lines up pretty nicely. It appears that we just passed a 48 Day point and have consolidated until we reach that critical angle. We have reached the 15-Day mark after the spring equinox which Gann identifies as an important date to look for.
Looking at the chart above we can see that it's primed for a breakout based on the following reasons:
We are not only at the 52-Week Low but it also just peaked out of the Wave Trend "Buy" zone;
ADX value of 25 confirms the trend is strong;
Stoch and RSI are both low enough to still jump in the trend;
MACD crossover confirms entry.
What are your thoughts?
Comment
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I drew Gann box on a weekly scale and looked further in depth with a MACD crossover strategy. A good point to watch would be around June 21 which coincides with the Gann box convergence and coincidentally is the summer solstice and an important date to look for.